Tony’s chocolates have made their mark in the Netherlands and the rest of Europe. In recent years he has also increased his presence in the United States.
Now the brand has caught the attention of Starbucks founder and former CEO Howard Schultz.
The celebrated (and sometimes controversial) former boss bought a 2% minority stake in the Dutch chocolatier on Wednesday, Tony said.
Negotiations for a deal have been underway for a while and come at a time when Tony’s has seen rapid growth in the United States. The company’s sales have quadrupled in the U.S. since 2020 and are likely to continue expanding across major retailers. It is already available at Walmart and other physical stores in America.
“Tony’s rapid revenue growth, growing popularity among U.S. consumers, and growing investor interest demonstrate that building a company that balances shareholder returns with its impact on people and the planet isn’t just the right thing to do, but also the smart thing to do for businesses today.” Tony’s CEO, Douglas Lamont, said this in a statement.
The Dutch company prides itself on putting impact above the sale of chocolates. Through its packaging and marketing campaigns, Tony’s raises awareness of exploitation in the cocoa industry and has in the past called out big chocolate companies for not doing enough to address human rights concerns.
Outside of the United States, Great Britain has also been a rapidly growing geographic area for the Tony’s brand, even in a very competitive chocolate market. Just last year, Tony’s raised €20 million ($21.7 million) in equity capital to grow into “multiple markets.”
As interest in companies committed to social impact has increased along with demand, Tony’s said it will dedicate part of its 2023 capital injection to doubling its U.S. operations.
This isn’t Schultz’s first investment in fast-moving consumer goods: He has also invested in Oatly and Cumulus Coffee, although none of his previous known investments were in chocolatiers.
The announcement of Schultz’s participation comes against a backdrop of stratospheric cocoa prices, which have resulted in an increase in the price of chocolate for consumers. The dire situation was influenced by a mix of factors, including unfavorable weather conditions and a supply crisis in global cocoa hubs.
Tony’s has raised prices in some of its markets in response to cocoa inflation, the company’s UK and Ireland boss, Ben Greensmith, said. Fortune last month. The company is still looking for ways to help farmers take advantage of rising cocoa prices, even as industry intermediaries have made the problem more complicated to manage.
Soaring cocoa prices don’t seem to be holding consumers back, at least not Tony’s Chocolonely loyalists. This is probably why Tony’s is confident in its bet in the United States, aiming to reach 20% more stores in the next year.